In December 1995, the Republican National Committee (RNC) ran an advertisement in the newspapers USA Today and Roll Call contending that Republicans were increasing Medicare spending, not cutting it. To back up this claim, the ad offered $1 million to anyone who could successfully disprove the following statement:
In November 1995, the U.S. House and Senate passed a balanced budget bill. It increases total federal spending on Medicare by more than 50% from 1995 to 2002, pursuant to Congressional Budget Office standards.
Eighty people mailed in claims for the million-dollar prize. The RNC responded to each claimant by sending him or her a form letter rejecting the claim as incorrect, and enclosing a Congressional Budget Office report. A number of rejected claimants filed breach of contract suits. The RNC moved for summary judgment on two principal grounds: (1) that the advertisement was merely a "parody" and not binding on the RNC; and (2) that even if the ad were an offer to contract, the statement in question was not false. Although the U.S. District Court for the District of Columbia rejected the first argument, it accepted the second and granted summary judgment against all the claimants.
The appeals of two claimants survived, those of Rep. Gene Taylor (D-MS) and Charles P. Resor. Rep. Taylor focused on the statement's first sentence, arguing that the bill in question did not and could not actually balance the budget in fiscal year 1996. Mr. Resor took a different tack, claiming that the assertion that the bill "increases" spending is false because President Clinton vetoed the bill and Congress never overrode it.
The U.S. Court of Appeals for the District of Columbia affirms, ruling that the statement is not false with respect to either claim.
Subscribe to the Knowledge Bank.
